Morgans Hotel Group Delays Mondrian and Delano in Las Vegas Indefinitlely
Wow. This is the most stunning hotel delay news yet and a very good indicator of just how bad the hotel industry is getting these days.
Morgans Hotel Group has announced they are putting their Echelon Las Vegas project, which would include a Mondrian and a Delano Hotel, on hold.
Morgans has made the decision based on their partner, Boyd Gaming's statement that the "challenging" economic conditions and scary capital markets had forced them to delay Echelon construction. The official statement from MHG:
Given Boyd's announcement and the difficulties in the credit markets, MHG believes that the joint venture will be unable to secure financing at favorable rates and conditions by September 15, 2008. MHG does not intend to further extend the joint venture agreement on its current terms but expects to evaluate future proposals relating to the project with Boyd.
In other words: Mondrian Las Vegas and Delano Las Vegas? Crapped out.